So, you have decided you are going to develop your own tech solution. It’s great news and exciting and you want to crack straight on with the first stage. Once you finish estimating the business value, outlining core functions, and deciding on the initial specs, you release that this is just the beginning. The next stage is your Research and Development (R&D).
You have two basic options here. You can build your own in-house R&D or you can outsource the task. The latter option guarantees your idea will be turned into a clickable prototype or a minimum value product (MVP) in order to gain the investment you will need to start producing the product.
The first option is only for the brave. The second option can reduce your costs while you are able to tap into a huge talent pool, and confirm that your idea is one that is heading for success. Let’s go over some of the main steps for this path:
1. Hiring your tech talent
It’s possible that your company doesn’t have a software development team, you may have an “IT guy” but they aren’t going to be able to handle the scale of this project, they may also not have the specific qualifications that will be needed. This is more the case when your idea is completely state-of-the-art.
The problem begins when you look at how difficult it is to hire the right software developer. Basically, there is just not enough talent. There are approximately 1 million software development vacancies in the US alone. It is unlikely that they will be filled by 2020.
65% of companies stated that they had hiring issues according to KMPG’s survey. With such a shortage in the market, it’s understandable that the salaries for qualified developers might be too high for some companies’ budgets. Outsourcing your R&D development is the ideal solution to finding qualified specialists at affordable rates.
2. Retaining Hires
The hiring process is long and requires a lot of effort. Now that you have found your R&D developer, it is necessary to keep your foot on the pedal to ensure a head hunter doesn’t come along and steals them from under your nose.
The best thing you can do to encourage your hire to stay with the company is to offer an attractive compensation package. In the past, a six-figure salary may have been enough. Today, you will have to include health insurance, paid sick leave and vacations, even free meals and gym memberships.
There are several benefits that are now mandatory, for example, some kind of health benefits and a retirement plan. Obviously, the more cash flow you have, the more attractive you can make your package. Work together with your financing and HR department to see what options are available to increase retention.
3. IT Infrastructure Investments
Regardless of your brilliant plan and your amazing hire, if you don’t have the appropriate IT infrastructure, you aren’t going to be ready to begin. It is necessary for your development team to have the perfect tools and platforms to be able to carry out the in-house development.
Since cloud-based infrastructures are now easily at hand, you might think that using cloud-based solutions is the best way forward. However, the purchasing of professional software and its management can be expensive, complex, and potentially frustrating.
If you are considering an offshore R&D development center, you will notice that they have all of the tools and equipment necessary to carry out your project. It’s the outsourcing company that is responsible for having the right equipment and support to complete a project.
By choosing in-house R&D, you are investing time and money in order to hire talent that will become part of your team in the long run. However, by outsourcing R&D development, you can take advantage of the talent and infrastructure that an outsourcing company has.
Where R&D Outsourcing has succeeded
Sometimes, you might need more than just an article to convince you outsourcing is the right option for you. Below you will find some companies that chose R&D outsourcing:
- Skype– The idea for the world’s leading video chat platform came from Denmark and Sweden however, Skype was created by developers based in Estonia and Ukraine.
- Opera– It was a Norwegian company that began the project of this Internet browser. Developers from many countries contributed to this project, including Poland and Ukraine.
- Wix- A very popular web development platform, Wix’s headquarters are based in Tel-Aviv, Israel. Their developers are based all over the world, but over 500 are from Kyiv and Dnipro, Ukraine.
- Alibaba- While greatly associated with China, the e-commerce site has developers from a number of other countries.
Google, Amazon, Facebook, and Apple, the 4 big tech giants, all use outsourcing for their research and development.
Why choose Ukraine for R&D Outsourcing
You will find a number of advantages when you choose Ukraine. The country boasts a high level of talent with high standards in development. The workforce has a strong work ethic excellent communication skills and a culture that is compatible with many others. As well as this, the developers have excellent rates. Massive tech names such as Samsung, Skype, Microsoft, and Playtech, all have remote R&D centers in Ukraine.
UnitCity reported that Ukraine has 18 companies on the list of the Top 100 IT Outsourcing companies. It’s safe to say that Ukraine is making a giant impact on the world’s IT industry. What is more, companies are now proud to announce their involvement in Ukraine.
In summary, while it is perfectly reasonable to set up your own R&D, you will not only reduce the possible hassle, but you may even discover new advantages from outsourcing, particularly in Ukraine.